Bitcoin, Ethereum and Solana Predictions

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The year is coming to an end and it is fair to draw conclusions about the world of crypto. Thus, a clear picture is needed regarding the price predictions of three of the most important crypto assets in the market: Bitcoin, Ethereum, and Solana.

In addition, it is also important to take a look at what the future of CEX (centralized exchanges) will be after the tragic events of 2022 and the rapid expansion of the NFT and metaverse worlds.

Bitcoin Predictions: Black Swan in 2023?

Amid trends of tighter regulation and an impending economic recession, there are many factors that could cause Bitcoin to encounter a black swan event in 2023. In fact, an important lower support level for Bitcoin would be $10,000. .

In 2023, the Fed’s monetary policy should move away from tighter controls or the economy will fall into a deeper recession. In the case of more flexible policies, and if regulation can be more enforced, Bitcoin and other cryptocurrencies will begin to recover.

Although Bitcoin’s trend is by no means stable, one is quite optimistic about its upward trajectory. With the certainty of a Bitcoin halving event in 2024 and increased demand and adoption of cryptocurrencies, the price could enter a range of $30,000 to $50,000 and close at the level resistance of around $40,000 by the end of 2023. Other cryptocurrencies will follow, possibly doubling.

In general, there will be no significant events in the first quarter of 2023 that will drastically alter the movement of the market. The cryptocurrency sector is still under pressure, which means that rapid development and recovery should not be expected.

Most likely, during the first three months of 2023, Bitcoin will fluctuate between $17,000 and $18,000 and, except for a few points where it will fall below established levels, it will periodically show growth, only to then fall back. A thaw could occur in February 2023 at the earliest, and a full recovery should be expected on the eve of the halving, in March 2024.

Let’s dive deeper: Bitcoin vs. Bitcoin Cash

Both investments, Bitcoin and Bitcoin Cash, can be judged on several points. First, the market cycle in 2023, whose overall liquidity could be better. Nevertheless, the overall probability of reduced liquidity is relatively high, so it would be better to be more inclined to invest in BTC, which enjoys high acceptance and stability.

Second, there are external stimulus events: BCH’s half-life is likely to be around April 7, 2024 and BTC’s around May 2, 2024. Since both assets have half-life expectations , BTC’s half-life expectancy has the biggest impact on the market.

Thus, one is more inclined to invest in BTC to take the majority and BCH can be allocated to small positions. Finally, left and right buying strategies are to be considered, which are different.

In fact, BTC is suitable for buying in lots on the left side of the lower oscillating range, and BCH is suitable for buying later on the right side after capital intervention and breaking the key pressure level, in order to get more short-term benefits. term.

Therefore, in terms of positions, BTC should occupy the majority and BCH should occupy the small position. To summarize: in 2023, BTC can be allocated in lots on the left side, representing 95% of the total position, and BCH is bought on the right side, representing 5%.

Ethereum predictions positive or negative? Hard to tell due to volatility

It is quite difficult to predict the price movement of ETH for the next 12 months because the currency is so volatile. Additionally, the value of an asset may be affected by external events that cannot be predicted at this time. Therefore, two scenarios can be envisaged: negative and positive.

In the case of the negative scenario, the value of the currency can be expected to decrease to the levels of $1077 to $1100. The key role in such a scenario will be played by short-selling speculators, who continue to drive a bear market.

Moreover, the fear and greed index is currently in the red zone with a sell recommendation, a sign of an ongoing downtrend that will continue into the first quarter of 2023. A market thaw could be expected at the earliest in spring 2023.

At that time, ETH will most likely find the bottom and begin to gradually rally. In the fall of 2023, the currency could reach $1,400 and hold until the end of 2023.

However, if a positive scenario occurs, the warming will occur in March-April 2023, and the activity of users of the metaverse and NFTs will increase the price of the token. In this case, we should expect the coin price to recover to the $1350-$1400 level with further growth.

By the end of 2023, ETH could reach a value of $1,500 and establish itself at this level. A similar picture will be seen in the non-fungible token market: trading volumes will decrease and the number of traders on trading floors will decrease.

Solana predictions for 2023: the difficulties following the collapse of the FTX

As we know, unfortunately, the collapse of FTX had a great impact on the ecosystem of Solana. Solana’s TVL indeed fell more than 70%, from $1 billion in November to $280 million on December 14.

Most of its projects have been affected by FTX and Alameda, which generally have high market value but low adoption. On the other hand, it is also a more systematic stress test for Solana: it is far from being eliminated.

Besides the impact of FTX and Alameda, 2023 is an opportunity for Solana to demonstrate that it can become a more decentralized and equitable public channel. More than 750 projects were submitted during the last hackathon. Solana may take longer to shake off the impact of FTX, but in 2023 we can still pay attention to outstanding developers and projects and see if Solana can come back up.

In general, the best cryptocurrencies to bet on in 2023 seem to be confirmed as always BTC and ETH, as they represent the fundamentals of the main projects of the cryptocurrency market. UNI and AAVE, on the other hand, benefit from the FUD around CEX. The primary DEFI will be adopted by the market and increase its market share.

On the other hand, Arbitrum recently overtook Polygon, becoming the second largest public chain after ETH/BSC, in terms of TVL, which shows the popularity of the fund. L2 tokens, such as Arbitrum, Starknet, and Zksync, which will be issued in the future, will support more applications and are worth considering.

CEX, NFT and metaverse: everything you need to know for 2023

Speaking of cryptocurrency trends in 2023, several main directions will be seen in the market. First, stricter CEX regulations

Indeed, the negative experience of FTX proved once again that regulation and transparency of centralized cryptocurrency exchanges is a necessary step towards a safe and sustainable market.

The FATF, the European Union, and many other regulatory institutions are already poised to tighten controls on CEX operations. Among them, Bitget is a completely transparent and open exchange.

In fact, in early December, it announced its testing of Merkle’s tree reserves with a third-party auditing firm and allowing its users to verify their assets on the website.

There will also be new decentralized financing and lending opportunities. After observing three major insolvency events this year, including Luna, Three Arrows Capital and Alameda Research, centralized lending activity has been further disproven, and confidence and demand for “decentralized lending” will increase further, opening long-term opportunities and innovation for decentralized finance (DeFi). This will lead to the disappearance of most centralized lending activities.

Finally, also in 2023, we will see the rapid development of the NFT sector and the metaverse. In fact, NFTs are expected to become an integral part of GameFi and the entertainment market.

If we look at the past year, we can see that in 2022, several major movie studios and music labels had already released their own NFTs, and this trend will continue in 2023.

As for the metaverse, however, it will receive special attention in the coming year. In fact, major brands will begin to integrate their products and services into the metaverse, and financial industry institutions such as stock exchanges, banks, and credit companies will provide services to virtual users. Of course, this will involve some changes related to the regulation and control of activities in the metaverse. Such a process has already begun.

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